Polo Ralph Lauren isn’t the only fashion brand making partnerships in this vein. Louis Vuitton recently partnered with the wildly popular brand Supreme on a limited-edition line, and Fendi and Fila launched a limited line combining the two brands’ logos.

“There’s an emerging brand of luxury, built around the Gen Z and Millennial mindset, whereby luxury is no longer tethered just to price and perception,” Brian Trunzo, senior consultant at WGSN’s consultancy division, Mindset, recently told Business Insider. “It feels like we’re living in the age of the remix.”

Though luxury brands have been in a strong place recently, Coye Nokes, a partner in management-consulting firm OC&C Strategy Consultants, told Business Insider that that growth can’t continue forever, which could explain a growing interest in streetwear collaborations.

“I think it’s about acquisition of new customers and recruiting people into your brand. Streetwear brands definitely have a different audience, but this is a great way to maybe increase your awareness among a different set of consumers. In that way, these collaborations can be quite powerful,” Nokes told Business Insider.

Here are some of the other major changes happening in the fashion industry:

Luxury brands have been partnering with streetwear brands, in part to recruit younger customers, and in part to experiment with different business models.

Trunzo told Business Insider that Polo choosing to work with Palace was a smart decision. Since Palace doesn’t do collaborations very often, there is a level of exclusivity that helps it keep its luxury appeal.

Vimeo/Palace Skateboards

Louis Vuitton has also released a streetwear line with Supreme, a brand with a cult following among teens.

Supreme

And Fendi released a line with Fila that combined the two brands’ logos.

Fendi

Gucci has managed to connect with younger shoppers without a streetwear collaboration for a number of reasons. Creative Director Alessandro Michele has proven to have a keen awareness of what young people want, including bright, eclectic colours and patterns that are engaging and look good on Instagram.

To an extent, the definition of luxury itself has been changing. It isn’t just about price and perception as much as it is about accessibility. The less accessible a product is, the more elevated the brand becomes.

Business Insider/Jessica Tyler

But price isn’t the only thing that makes products less accessible. Limited-edition collections — or “drops” — have the same appeal, and they allow luxury brands to test new business models while attracting younger shoppers, according to Nokes.

Business Insider/Jessica TylerShoppers line up outside of Supreme’s New York flagship store for the first big Supreme drop of the fall season.

Luxury brands aren’t only partnering with streetwear brands — they’re also looking to other luxury brands. In late September, Michael Kors acquired Versace in a $US2.12 billion deal.

Both Trunzo and Nokes told Business Insider that Michael Kors appears to be gearing up to become a major fashion house like the Paris-based LVMH. Michael Kors also acquired Jimmy Choo in a $US1.2 billion deal last year.